U.S. Litigation Update

U.S. Litigation Update

Genus plc (LSE: GNS), a global pioneer in animal genetics, announces that on June 7, 2017, Inguran, LLC, XY LLC and Cytonome/ST, LLT (collectively ST) filed patent infringement proceedings against ABS Global, Inc., Genus plc and Premium Genetics (UK) Limited (collectively ABS) in the United States District Court for the Western District of Wisconsin. The new litigation alleges that ABS infringes seven ST patents and asserts trade secret and breach of contract claims. ABS intends to vigorously defend ST's latest legal action.

The litigation is part of the long running dispute between ST and ABS in connection with the development and launch of Genus Sexed Semen technology (GSS), a proprietary product designed to compete with ST's monopoly in the processing of sexed bovine semen. In previous litigation initiated by ABS, the Court for the Western District of Wisconsin awarded ABS a permanent injunction against ST based on the finding that ST had wilfully maintained an illegal monopoly in the market for sexed bovine semen processing in the US since July 2012. The Court also found ABS had infringed two ST patents and awarded damages and post judgment royalties. ABS has filed a notice of appeal on one of these patents and an Inter-Partes Review oral hearing at the US Patent Office is scheduled shortly on the other. The US Patent Office had earlier found two other ST patents challenged by ABS to be unpatentable.

GSS is a novel and proprietary technology for sexing bovine semen that focuses on fertility outcomes and does not subject the sperm cells to the high pressures and sheer forces of the technology currently in use in the industry. The new litigation will not delay the commercial launch of GSS which will launch as scheduled in 2017 in the US and other key markets.